Agnico Eagle Mines Limited · TSX:AEM
Agnico Eagle Mines — Q2 2023 Earnings Presentation
36 slides from Agnico Eagle Mines's earnings presentation, Jul 27, 2023
Slide 1: Second Quarter 2023 Results
Second Quarter 2023 Results July 27, 2023
Slide 2: Forward Looking Statements
FORWARD LOOKING STATEMENTS The information in this presentation has been prepared as at July 26, 2023. Certain statements contained in this presentation constitute "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995 and "forward-looki
Slide 3: Notes to Investors
NOTES TO INVESTORS Note Regarding the Use of Non-GAAP Financial Measures This presentation discloses certain financial performance measures, including "total cash costs per ounce", "all-in sustaining costs per ounce", "minesite costs per tonne", "net debt", "adjusted net income", "adjusted net incom
Slide 4: Notes to Investors
NOTES TO INVESTORS Note Regarding the Use of Non-GAAP Financial Measures Minesite costs per tonne are calculated by adjusting production costs as recorded in the consolidated statements of income (loss) for inventory production costs, operational care and maintenance costs due to COVID-19, and other
Slide 5: Second Quarter 2023 Highlights
Second Quarter 2023 Highlights Record quarterly production and strong cost performance with solid Solid financial results with a second consecutive quarter of record safety performance cash flow Payable gold production of 873 koz Net income of $0.66 per share Production costs of $851/oz, Total
Slide 6: Update on Key Value Drivers
Update on Key Value Drivers Canadian Malartic Complex • An updated internal study, released on June 20, 2023, demonstrates improved value based on a larger mineable resource and an extended mine life, with significant geological upside potential • Ramping up shaft sinking activities and production
Slide 7: Odyssey Technical Evaluation Highlights
ODYSSEY TECHNICAL EVALUATION HIGHLIGHTS Drilling Conversion Mine Life Update Surface Construction Improved Valuation with Improves Quality of Excellent Potential for Mineable Ounces Growth +3 Years added 0.2 Moz P&P 60% completed in to mine life, until 2042 $2.5 B NPV(5%) 4.8 Moz M&I 2.5 Years +1.7
Slide 8: Odyssey Mine – Completed Initial Phase of Construction
Odyssey Mine – Completed Initial Phase of Construction Ramping-up production from Odyssey South and advancing next phase of construction Odyssey Mine, Internal Zones Providing Upside Production from Odyssey South ramped-up through the quarter. Commissioning of paste fill plant expected to be com
Slide 9: Detour Lake Operational Improvement Journey
Detour Lake Operational Improvement Journey 2024+ Updated LOM 2022 Drill and Blast Optimization Internalization of blast crew Drill Winterization Mill Optimization 2020 Projects 2018 2021 Steeper IRA for North Wall 2019 795 Light weight boxes 7495 Rope Shovels PM Intervals Tele-remote drilling Rea
Slide 10: Detour Lake – Drilling Continues to Infill and Expand Known Mineralization
Detour Lake – Drilling Continues to Infill and Expand Known Mineralization 10 drills active to investigate the deposit below the West Pit mineral reserve and the western plunge extension of the mineralization to confirm the mineralized zones potentially amenable to underground mining Highlights
Slide 11: Hope Bay – Step-Out Drilling Extends Madrid's High-Grade Patch 7 Zone
Hope Bay – Step-Out Drilling Extends Madrid's High-Grade Patch 7 Zone At Madrid, wide step-out drilling tested an under-explored 1.5km gap between Suluk and Patch 7 at depths between 400m to 700m Higher gold grade mineralization encountered, including highlight intercepts: 10.0 g/t gold over 14.
Slide 12: Positive Minesite Exploration Expected to Drive Future Mineral Resource Growth
Positive Minesite Exploration Expected to Drive Future Mineral Resource Growth Meliadine – Drilling continues to investigate the vertical extensions of the mineralized zones in the central part of the Tiriganiaq, Wesmeg and Wesmeg North deposits. At Wesmeg North, a recent intercept yielded 6.3 g/t
Slide 13: Operating Highlights
Operating Highlights Record Quarterly Production and Solid Cost Performance Q2 2023 YTD Q2 2023 Production Total Cash Costs Operating Margin Production Total Cash Costs Operating Margin (Gold oz) ($/oz) ($000’s) (Gold oz) ($/oz) ($000’s) LaRonde complex 76,780 $884 $84,691 156,387 $922 $154,502 Cana
Slide 14: Financial Highlights
Financial Highlights Record Quarterly Revenues and Solid Cash Flow Per Share Q2 Q2 YTD YTD 2023 2022 Q2 2023 Q2 2022 Realized Gold Price ($/oz) $1,975 $1,866 $1,935 $1,872 Gold Production (000 oz) 873.2 858.2 1,686.0 1,518.8 Gold Sales (000 oz) 858.8 836.5 1,646.4 1,529.4 Total Cash Costs (US$/oz) $
Slide 15: Balance Sheet Strength and Financial Flexibility
Balance Sheet Strength and Financial Flexibility Focus on Capital Discipline and Returns to Shareholders Strong Available Liquidity - $1.53B* Strong liquidity with $433M in cash and cash equivalents and $1,100M (excluding $600M accordion) in undrawn credit lines $433 available, as at June 30, 2023
Slide 16: Superior Leverage to the Gold Price on a Risk-Adjusted Basis
Superior Leverage to the Gold Price on a Risk-Adjusted Basis Continuing to build a profitable, high-quality, low-risk business based on: Leading position in some of the world’s best gold mining jurisdictions as measured by: • Multi-mine, multi-decade geologic potential uarter • Multi-decade poli
Slide 17: OZ20-—-HArPaAmvVoO
OZ20-—-HArPaAmvVoO
Slide 18: LaRonde Complex
LARONDE COMPLEX Solid Production, Mill Throughput, Hoisting and Development Performances in Q2 2023 Proven & probable gold Measured & indicated gold Inferred gold resource Q2 2023 Production Q2 2023 Total Cash Costs reserves (million oz) resources (million oz) (million oz) (koz) per ounce 3.2 1.2 1.
Slide 19: Canadian Malartic Complex
CANADIAN MALARTIC COMPLEX Increased Productivity at Barnat Pit; Odyssey Underground Project Remains on Time and on Budget Proven & probable gold Measured & indicated gold Inferred gold resource Q2 2023 Production Q2 2023 Total Cash Costs reserves (million oz) resources (million oz)** (million oz)**
Slide 20: Goldex
GOLDEX Record Quarterly Gold Production and Mill Throughput Since Re-start; Best Development Quarter in Deep 2 Proven & probable gold Measured & indicated gold Inferred gold resource Q2 2023 Production Q2 2023 Total Cash Costs reserves (million oz)* resources (million oz)* (million oz)* (koz) per ou
Slide 21: Detour Lake
DETOUR LAKE Achieves Record Quarterly Mill Performance; Advancing Well to Achieve 28.0 Mtpa by 2025 Proven & probable gold Measured & indicated gold Inferred gold resource Q2 2023 Production Q2 2023 Total Cash Costs reserves (million oz) resources (million oz) (million oz) (koz) per ounce 20.7 18.5
Slide 22: Macassa
MACASSA Record Quarterly Mill Throughput, Skipped Tonnes and Underground Development Underscore a Solid Production Result Proven & probable gold Measured & indicated gold Inferred gold resource Q2 2023 Production Q2 2023 Total Cash Costs reserves (million oz)** resources (million oz)** (million oz)*
Slide 23: Meliadine
MELIADINE Record Monthly Mill Throughput in May; Record Quarterly Health and Safety Performance Proven & probable gold Measured & indicated gold Inferred gold resource Q2 2023 Production Q2 2023 Total Cash Costs reserves (million oz) resources (million oz) (million oz) (koz) per ounce 3.8 1.6 2.3 88
Slide 24: Meadowbank Complex
MEADOWBANK COMPLEX Solid Operational Performance; Modifications Complete to Cemented Rockfill Plant Proven & probable gold Measured & indicated gold Inferred gold resource Q2 2023 Production Q2 2023 Total Cash Costs reserves (million oz) resources (million oz) (million oz) (koz) per ounce 2.2 1.5 0.
Slide 25: Fosterville
FOSTERVILLE Noise Prohibition Lifted; Fosterville Returns to Normal Operations in June Proven & probable gold Measured & indicated gold Inferred gold resource Q2 2023 Production Q2 2023 Total Cash Costs reserves (million oz) resources (million oz) (million oz) (koz) per ounce 1.7 1.7 1.2 82 $436 I
Slide 26: Kittila
KITTILA Strong Operational Performance from Underground Mine; Major Projects Nearing Completion Proven & probable gold Measured & indicated gold Inferred gold resource Q2 2023 Production Q2 2023 Total Cash Costs reserves (million oz) resources (million oz) (million oz) (koz) per ounce 3.7 1.9 0.9 50
Slide 27: Pinos Altos
PINOS ALTOS Production and Development Higher Than Planned Proven & probable gold Measured & indicated gold Inferred gold resource Q2 2023 Production Q2 2023 Total Cash Costs reserves (million oz) resources (million oz) (million oz) (koz) per ounce 0.7 0.8 0.2 22 $1,282 Both gold and silver produc
Slide 28: La India
LA INDIA Production in Line With Targets in Q2 2023; Work Continues to Reduce Cyanide Consumption and Improve Leach Kinetics Proven & probable gold Measured & indicated gold Inferred gold resource Q2 2023 Production Q2 2023 Total Cash Costs reserves (million oz) resources (million oz) (million oz) (
Slide 29: 2022 Gold Mineral Reserves and Mineral Resources
2022 GOLD MINERAL RESERVES AND MINERAL RESOURCES Gold Mineral Reserves Increased 9% to Record Levels AGNICO EAGLE As of December 31, 2021* As of December 31, 2022 Category Tonnes Grade Contained Gold Tonnes Grade Contained Gold (000s) (g/t Au) (000s oz) (000s) (g/t Au) (000s oz) Mineral Reserves Pro
Slide 30: 2022 Gold Mineral Reserves and Mineral Resources
2022 GOLD MINERAL RESERVES AND MINERAL RESOURCES MINERAL RESERVES AS OF DECEMBER 31, 2022 OPERATION / PROJECT PROVEN PROBABLE PROVEN & PROBABLE GOLD Mining Method AEM Share 000 Tonnes g/t 000 Oz Au 000 Tonnes g/t 000 Oz Au 000 Tonnes g/t 000 Oz Au LaRonde¹ UG 100% 2,809 5.23 473 9,497 6.69 2,042 12,
Slide 31: 2022 Gold Mineral Reserves and Mineral Resources
2022 GOLD MINERAL RESERVES AND MINERAL RESOURCES MINERAL RESERVES AS OF DECEMBER 31, 2022 OPERATION / PROJECT PROVEN PROBABLE PROVEN & PROBABLE SILVER Mining Method AEM Share 000 Tonnes g/t 000 Oz Au 000 Tonnes g/t 000 Oz Au 000 Tonnes g/t 000 Oz Au LaRonde UG 100% 2,809 16.45 1,485 9,497 21.53 6,57
Slide 32: 2022 Gold Mineral Reserves and Mineral Resources
2022 GOLD MINERAL RESERVES AND MINERAL RESOURCES MINERAL RESOURCES AS OF DECEMBER 31, 2022 OPERATION / PROJECT MEASURED INDICATED MEASURED & INDICATED INFERRED AEM 000 000 000 000 000 000 000 GOLD Mining Method Share Tonnes g/t 000 Oz Au Tonnes g/t Oz Au Tonnes g/t Oz Au Tonnes g/t Oz Au LaRonde UG
Slide 33: 2022 Gold Mineral Reserves and Mineral Resources
2022 GOLD MINERAL RESERVES AND MINERAL RESOURCES MINERAL RESOURCES AS OF DECEMBER 31, 2022 OPERATION / PROJECT MEASURED INDICATED MEASURED & INDICATED INFERRED 000 000 000 000 000 GOLD Mining Method AEM Share 000 Tonnes g/t 000 Oz Au 000 Tonnes g/t Oz Au Tonnes g/t Oz Au Tonnes g/t Oz Au Pinos Altos
Slide 34: Notes to Investor Regarding the Use of Mineral Resources
NOTES TO INVESTOR REGARDING THE USE OF MINERAL RESOURCES The mineral reserve and mineral resource estimates contained in this presentation have been prepared in accordance with the Canadian securities administrators' (the "CSA") National Instrument 43-101 – Standards of Disclosure for Mineral Projec
Slide 35: Notes to Investor Regarding the Use of Mineral Resources (Continued)
NOTES TO INVESTOR REGARDING THE USE OF MINERAL RESOURCES (CONTINUED) NI 43-101 requires mining companies to disclose mineral reserves and mineral resources using the subcategories of "proven mineral reserves", "probable mineral reserves", "measured mineral resources", "indicated mineral resources" a
Slide 36: agnicoeagle.com
Trading Symbol: AEM on TSX & NYSE Investor Relations: 416-947-1212 info@agnicoeagle.com agnicoeagle.com